Bond investing guru Jeffrey Gundlach struck several cautionary notes in a conference call Tuesday, citing concerns over slowing growth in China, and suggesting that if margin debt “hooks down,” equity markets in the U.S. could face double-digit percentage declines.

Gundlach focused a good deal of time on the Federal Reserve’s Quantitative Easing program, suggesting that the “taper could be tapered” later this year, if economic troubles in China weigh down global growth.

The “QE” in the title of his webcast, of course, refers to the Federal Reserve’s bond-buying stimulus program, which is now winding down. Gundlach recently told the New York Times “I don’t really like the Fed very much.”

He said he doesn’t expect the Fed to end bond purchases this year, and said there’s no way the Fed could begin to raise rates until it finishes tapering.

Gundlach said the “easy money” has been made in gold this year.

He said 10-year interest rates could test 2.5% but are unlikely to fall lower unless there’s a significant economic downturn or geopolitical issue, something he gave only a 30% chance to. If that does happen, however, the consequences could be severe, given the large amount of short selling in the bond markets.

Good afternoon. Tom Bemis is about to get started live-blogging Gundlach’s webcast (which you can still register for here.) But before we start, let’s review a couple of Gundlach’s calls from his last webcast in January.

In his last webcast in January, Gundlach had some interesting and somewhat contrarian calls, and a number of them turned out to be correct. When most investors thought the 10-year Treasury yield
/quotes/zigman/4868283/delayed10_YEAR was going surge well past 3%, Gundlach said it would fall back toward 2.5%. It hit a recent low of 2.58% in early February. He also said he likes convertible bonds and hates Treasury inflation-protected securities.

Don’t get us wrong, not everything on his bucket list has been checked off: Gundlach said he thinks emerging markets are a better value than they get credit for, which was followed by a round of weakness in those markets. He said he thought the dollar
/quotes/zigman/4868099/realtime/sampledUSDJPY would head higher in 2014, but that hasn’t played out just yet either.

When he’s not posing next to god (above), Gundlach is running the money management firm’s Total Return Bond Fund
/quotes/zigman/593786/realtimeDBLTX. Like most bond funds, Gundlach’s suffered as benchmark yields rose sharply last year, but the fund eked out positive returns in 2013, and recently had its first monthly net inflows in nine months. All told, the fund is doing pretty well this year: it’s up 2.5% year-to-date, compared with the Barclays Agg, which is only up 1.5%.

Gundlach says you have to watch margin debt. It is in “scary” zone. “If and when it hooks over, that’s when you’re likely to see a double-digit decline in market indexes. “There’s room for the market to correct down to 1750 level, without scaring people away.

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